The Business of Value Investing.pdf

vii

Contents

Acknowledgments xiii

Introduction xvii

Chapter 1 Invest in the Business, Buy the Stock 1

Stock Prices Are More Noise Than

Information 4

A Businesslike Approach to Valuing

the Business 6

The Making of a Legend 11

A Simple Idea, Really 14

Chapter 2 The Only Three Types of Investments You

Need to Know 15

Stocks Prices Aren’t Always Rational 16

The Business Side of Investing 17

Three Buckets: Undervalued, Overvalued,

and Fairly Valued 21

Price Determines Value 24

Key Takeaways 31

ftoc.indd viiftoc.indd vii 9/2/09 6:56:41 PM9/2/09 6:56:41 PM